In a significant step towards strengthening investor protection, the Department of Telecommunications (DoT) and the Securities and Exchange Board of India (SEBI) have signed a Memorandum of Understanding (MoU) to tackle telecom-linked financial frauds and investment scams. The Ministry of Communications announced the development on April 15, highlighting a growing need for coordinated action as digital financial transactions surge in India.
The partnership aims to establish a structured, real-time data-sharing framework between the telecom and securities regulators to detect and prevent fraud at an early stage. With cyber frauds increasingly exploiting mobile connectivity to target investors, the collaboration seeks to bridge a critical gap between telecom intelligence and financial market surveillance.
How the framework will work
At the core of the agreement is a two-way intelligence-sharing mechanism. The DoT will share its Financial Fraud Risk Indicator (FRI) with SEBI, enabling the identification of mobile numbers associated with suspicious activity patterns through multi-dimensional analysis. This indicator draws on inputs from financial institutions, law enforcement agencies, and DoT’s own systems.
Additionally, the DoT will automatically share the Mobile Number Revocation List (MNRL) with SEBI. This will allow market intermediaries such as brokers, mutual funds, and other regulated entities to ensure that investor accounts are linked only to active and verified mobile numbers, reducing the risk of misuse.
In return, SEBI will provide inputs on telecom resources linked to fraudulent trading accounts, impersonation cases, and money mule operations. This reciprocal flow of information will enable telecom authorities to take swift action against suspicious connections, including deactivation or further investigation.
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Role of Digital Intelligence Platform
The entire intelligence exchange will be facilitated through DoT’s Digital Intelligence Platform (DIP)—a large-scale system that already connects over 1,400 stakeholders, including banks, telecom operators, and law enforcement agencies. The platform enables real-time sharing of actionable intelligence, making the response to fraud faster and more coordinated.
By integrating SEBI into this ecosystem, authorities aim to create a holistic surveillance network that spans both telecom infrastructure and financial markets.
Fraud prevention
The collaboration marks a shift from traditional reactive enforcement to a proactive prevention model. The Financial Fraud Risk Indicator, supported by DoT’s Chakshu facility under Sanchar Saathi, acts as an early warning system by flagging potentially risky mobile numbers before they are used in scams.
This is particularly important as India’s retail investor base expands rapidly, with more individuals entering equity markets, mutual funds, and digital investment platforms. Fraudsters often exploit telecom channels—such as SIM cards and mobile numbers—for phishing, impersonation, and unauthorized transactions.
Strong track record
The MoU builds on DoT’s ongoing anti-fraud initiatives. Under the Sanchar Saathi programme, more than 88 lakh fraudulent mobile connections have already been disconnected using the ASTR system. The deployment of the FRI framework has also helped prevent financial losses of around ₹2,300 crore in the past 10 months, underscoring the effectiveness of telecom-led interventions.
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What lies ahead
Going forward, the DoT-SEBI partnership will focus on developing standard operating procedures (SOPs) for coordinated action, along with institutional mechanisms to share red-flag indicators. Continuous engagement and system upgrades are expected to keep pace with evolving cyber threats.
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